The year of 2015 has been extremely volatile for the sterling - euro currency pair exchange rates. At the start of the year, in January, one Pound was worth just over 1.27 Euros - 14 cents lower than now as we head into the last month of the year.

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Today the president of the IFO (Institute for Economic Research) Hans-Werner Sinn warned that respective crises in France and the Ukraine could send parts of the bloc into a triple dip recession.

The general consensus is that the Euro will not fall apart but in the coming months will become even more stagnant and hostile than we are used to seeing currently in Europe at the moment.

Mr Sinn has warned that the current crisis in the Ukraine will spread to the EU’s largest economy Germany and effect the countries rapid growth. This will have a very serious and more resounding effect on Germany’s neighbours who rely on its booming economy. The reason behind this is the Russian crisis has had an adverse effect on Germany who’s conglomerates and large companies trade a lot throughout Eastern Europe and given the current state of affairs will slow Germany down.

A proposed solution to the issues facing the Euro zone is to introduce a ‘breathable euro’ meaning that companies in severe economic crisis e.g. Greece and France can opt out of using the Euro in order to be able to write off some of their debts and re enter. Sinn also suggests that Germany should take on some inflation in order to help countries in Southern Europe out of the rut that they find themselves in.

Many believe that if the Euro zone crisis continues to have such a negative effect on a once proud and thriving continent we will have no choice but to unite under a ‘United States of Europe’ to ease the suffering of some of the crisis stricken countries.

A new crisis in Europe is of course likely to weaken the Euro, making Euro exchange rates better. However one currency which might not benefit at all is the Pound, since the UK is very vulnerable to a recession in Europe – in fact the rate for buying Euros might even fall, so don’t bank on improved rates if you are waiting for the Eurozone problems to make your property purchase in the sun any cheaper.